The Future of Travel & Tourism in Light of September 11, 2001 Graham Wason Vice President, Strategy & Development

Agenda n Overview of the Impacts n Implications on the Future n Role of Industry and Government

n 35% Reduction in US Revenue Passenger Kilometers (IATA) n % Reduction in Rest of the World Traffic (IATA) n % Empty Capacity n US Airlines Cut 97,000 Jobs Impact on Demand

“September was the worst month in the history of the business….. …..occupancies and room rates drastically reduced, as much as 50% to 60%” Bill Marriott Chairman & CEO Marriott International, Inc. & Member of WTTC

n Corp. Travel Demand: Expected 50% Decline to January 2002 (TBR) n Global Air Traffic: Expected 10% Decline in 2002 (Merrill Lynch) n 1.5% Decline in 1991 Due to Gulf War & Weak Economy (Merrill Lynch) Impact on Demand

n Worldwide Airlines: 131,190 Jobs n Postponed Airport / Infrastructure Development Projects in 2002 n Demand for New Aircraft Evaporated for 2003 and 2004 Impacts on Industry

WTTC Benchmark 10% Reduction in Travel & Tourism Demand United States: - 1.8% of total GDP Million Jobs European Union: - 1.9% of total GDP Million Jobs World: - 1.7% of total GDP Million Jobs

n Increased Costs n US Government Rescue Package n Psychological Damage to Traveller n Structural Changes to Infrastructure n Effective Communication of Safety and Security Enhancements Implications for the Industry

n Improve Measurement Tools n Unite Industry Participants n Harmonise International Safety and Security Measures n Co-ordinate our Messages Need for Action

n Leading International Travel & Tourism Associations n Calling on Governments to: u Harmonize International Safety and Security u Restore Consumer Confidence u Join Public/Private Partnerships Global Coalition

Travel & Tourism Global Economic Impact of Travel & Tourism Year 2001: 10% GDP 207 million jobs Year 2011: 11% GDP 260 million jobs

Bulgaria Economic Impact of Travel & Tourism by 2011 BGN4,852 Million 9.7% total GDP 220,000 jobs 7.6% total Employment

If travel & tourism in Bulgaria grows at the same rate of growth as the European Union 182,000 additional jobs will be created by WTTC

n A political engine n A supportive regulatory framework n Public Private Partnerships Long Term Planning

n Vision the future for travel and tourism - a future for everyone n Measure and promote the economic importance of travel and tourism n Communicate a positive image of the industry as a provider of jobs and career opportunities Seven Strategic Priorities

n Encourage free access, open markets, open skies and the removal of barriers to growth n Match infrastructure development and customer demand Seven Strategic Priorities

n Facilitate access to capital resources and technological advancement n Promote responsibility in natural, social and cultural environments. Seven Strategic Priorities